If you are a sub contractor, working under a contractor umbrella, you should think about making use of payroll services, because they can enable you to keep your status as a self employed trader, while helping you to ensure that you keep compliant to HM Revenue & Customs cis payroll rules and regulations.
As a sole trader, it can be desirable to you to retain your status as self employed. Reasons for this might be that you are required to pay less money in National Insurance contributions, and the ability to diminish the costs of your livelihood by offsetting outgoings against your tax liability when it comes to completing and filing your Self Assessment Tax return. And of course, you are free to accept or turn down contracts as you want. Not that you will automatically be in a position to turn down work; nobody is denying that, more than ever now in uncertain economic times, this can be a precarious position to be in. This is where contractor umbrella companies come in.
Whether you contract in the public or the commercial sector, or both, it is worth registering with an umbrella. You will need to get some paperwork filed first, as follows: you will surely need to request application forms, fill them in and send them. It is likely that this can be done electronically – i.e. you will be able to download an editable PDF of the form, fill it in on the PC, and email it back with no paper involved – but in order to obtain the form in the first place you will have to register your email address with the umbrella. They will be obliged to check your eligibility to work in the UK before you can start sub contracting for them.
The process for your payments is like this: you will need to log your hours as well as your hourly rates on a timesheet – again, in most cases this is nowadays done on an online interface on the contractor umbrella’s website – on a weekly, or monthly, basis. Then they will raise an invoice to the client, who will be asked to approve it before paying the invoice. Then, upon receipt of payment, the appropriate sum will be paid to your bank account. With these payroll services you can fully expect to be paid on time every time: as a self employed contractor this might be something you are not used to! You will stay self employed and enjoy the associated freedoms and savings. Also, your payroll process will be in line with HM Revenue & Customs cis payroll rules.
Please visit http://www.liquidfriday.co.uk/ for further information about this topic.
http://www.liquidfriday.co.uk/
4c863814abda0